Common Credit Report Errors
Credit report errors are more common than you many think. A recent study from the Federal Trade Commission found 26 percent of consumers had a material error on their credit report, and five percent of consumers had an error that was significant enough to place them in a different credit risk tier.
This means those consumers may have had to pay higher interest rates on car loans or credit cards due to a credit report error.
Checking your credit report regularly is an important part of maintaining financial health. Getting a copy of your report is free. In fact, the Fair Credit Reporting Act, a federal law, requires the three national credit bureaus to provide you with one free report every 12 months.
When reviewing your credit report, keep an eye out for these common errors:
- Incorrect personal information. Look for misspelled names, incorrect social security numbers and addresses where you never lived.
- Accounts that don’t belong to you. Unfamiliar accounts may be a sign of identify theft. You should take immediate action.
- Incorrect payment status. If you have paid your accounts on time, your report should not show deficiencies.
- Negative items older than seven years. Most negative items can remain on your report no more than seven years.
- Information belonging to an ex-spouse. Accounts that belong to a former spouse may mistakenly appear on your credit report.
If your credit report is free of errors, but your score still isn’t as high as you would like, know that you have options. Credit restoration can help you improve your credit after a foreclosure or bankruptcy. Harold Shepley & Associates is a full service Pennsylvania debt relief law firm, and we offer a free consultation to discuss your financial issues.
July 12, 2013 Posted in Credit, Financial Literacy Tagged common credit report errors, credit restoration, credit risk tier, federal trade commission, improve your credit, maintaining financial health Leave a comment
